Showing posts with label AWWA. Show all posts
Showing posts with label AWWA. Show all posts

Monday, January 2, 2012

AWHO sets standards of low transparency

Allotment of Army Flats in Panchkula
Consumer panel sees Adarsh-like scam
Vijay Mohan/TNS Monday, January 2, 2012, Chandigarh, India
Chandigarh, January 1

Holding that the allotment of some dwelling units made by the Army Welfare Housing Organisation (AWHO) in its project at Sector 20, Panchkula, was in violation of rules, the State Consumer Disputes Redressal Commission has observed that the exercise was done “presumably with a view to accommodate favourites and everything does not appear to have been done in a transparent manner.”

Ruling that the system adopted to fix the seniority of applicants was arbitrary, the Commission held that if enquired into deeply “this may again turn out to be another scam like Adarsh Society at Mumbai.”

AWHO, the Commission observed, is an organisation created for the welfare of serving and retired defence personnel and expected to act in a transparent manner.

A resident of Sector 2, Panchkula, RK Dhingra had earlier moved the District Consumer Forum against the non-allotment of a flat in AWHO’s colony or failing which, in another similar project in Panchkula or Mohali. The forum had granted him relief following which the AWHO authorities appealed against the order before the commission, which dismissed the appeal.Dhingra’s prime grievance was that some senior officers who were much junior registrants in the scheme by virtue of their date of registration, were later placed higher in the waiting list. Dhingra, with registration number 98,248 was placed at serial number 15 in the waiting list, where as a Brigadier with registration number 1,04,727 was placed on top of the list.

The seniority in the list was to be determined on the basis of the date on the bank draft and allotment thereafter on the basis of a draw of lots.

The complainant, however, had been told by the AWHO authorities that he was the senior-most applicant on the waiting list. When he came to know that some allotments were made “illegally”, he approached the authorities and was told that his present position in the list was No. 1. He could either seek transfer or withdraw his registration as all dwelling units stood allotted and had been handed over.

On pointing out discrepancies, he was told that all but one unit had been handed over and formalities and paperwork were in process for the lone remaining unit.
AWHO: Consumer panel sees Adarsh-like scam

Thursday, September 22, 2011

Can Canteen Profits be used for Welfare of Veterans?

Audit finds lapses in defence canteen operations
New Delhi, Aug 13 (IANS)
India's audit watchdog has found lapses in financial and business operations and the pricing and quality of goods of the Canteen Stores Department (CSD) that sells household products at cheaper than market rates to armed forces personnel and their families.
The report of the Comptroller and Auditor General (CAG) of India, tabled in the Lok Sabha Friday, says the 3,600 unit-run canteens (URCs), or retail outlets, of the CSD across the country have been kept out of the "purview of parliamentary financial oversight as they are considered to be regimental institutions".
This despite the fact that these URCs get soft loans and quantitative discounts through the CSD from the Consolidated Fund of India, it says.
"Neither the budget documents nor the proforma accounts of CSD reflect the operations of the (URCs) that are also not subject to the accountability regime for operations funded by the Consolidated Fund of India," the report says.The CAG said it was denied access to the URC records by the Army Headquarters in Delhi "in spite of repeated requests".
The matter was taken up at the level of the defence minister too but to no avail.
In the interest of transparency, the operational results of the units should be disclosed in the proforma accounts of CSD after ensuring that the units follow uniform accounting principles, the CAG has recommended.
This would enable the financial statements of CSD to provide a "true and fair view of the complete operations of the organisation".
Praising the CSD for its 55 percent increase in gross turnover (Rs. 6,955 crore in 2008-09 from Rs. 4,481 crore in 2003-04), the report says the gross and net profit however had not shown commensurate increase during this period.
"This was mainly due to increase in cost of goods purchased for sale as also increase in quantitative discount given to the units."
It says that evidence indicated that grants given to various organisations of the armed forces out of CSD profits did not follow the provisions of General Financial Rules (GFR) of the government.
"Grants were given to organisations without even insisting on application for funds. Statement of accounts was never sought before sanctioning the grants. Receipt of utilisation certificates was not watched, as required under GFR. Utilisation certificates were never insisted from major recipients namely the army, navy or air force for the grants provided."
The proforma accounts prepared by the CSD did not follow the generally accepted regimen of financial reporting, it said.
During the six years from 2002-2003 to 2007-08, Rs. 883.46 crore was transferred in the form of quantitative discount from the Consolidated Fund of India to the URCs.
Evidence also indicated that benefit of quantitative discount (QD) has never been passed to the consumer.
"Such discount could not be viewed as a trade discount as units operated in a captive market with pricing determined in accordance with the existing policies. QD was in fact another way of transferring money from CFI to non-public fund without conforming to the provisions of the GFR," the report says.

Audit finds lapses in defence canteen operations
Related Reading
Forces, CAG lock horns over audit of unit run canteens
Canteen Stores Department (India) Demystified

Friday, September 16, 2011

Forces, CAG lock horns over audit of unit run canteens

Wednesday, 14 September 2011 00:54
The armed forces and Comptroller & Auditor General of India (CAG) are at loggerheads over the auditing of the 4,500 unit-run canteens which have an annual turnover of Rs 10,000 crore.

Documents available with The Pioneer show that the chiefs of the Army, Air Force and Navy have refused to comply with the direction of the Defence Secretary to permit the CAG to audit the unit canteens. The Secretary had conveyed the direction of Defence Minister AK Antony, who had received a complaint from the CAG on the denial of audit by Army Headquarters.

“Since no headway has been made in this regard, the CAG has written to the Raksha Mantri on this issue and has requested his intervention for providing audit parties access to unit-run canteens (URC) as early as possible,” noted the Defence Secretary’s letter to the three service chiefs, marked ‘secret’.

“It has been observed by the CAG that considering the facts that URCs are located in Government premises, are run in most cases by service personnel, use Government transport and, most importantly, receive substantial funds from the Consolidated Fund of India, such denial violates provisions of the Constitution of India regarding the powers and duties of the CAG,” it added.

“It is, therefore, requested that necessary instructions may kindly be given to the concerned for allowing audit personnel to access information from the URCs under their control so that RM is apprised of them,” the Defence Secretary wrote.

Meanwhile, on September 7, Public Accounts Committee chairman Murli Manohar Joshi summoned the vice-chiefs of the Army, Air Force and Navy and directed them to provide access to the CAG for auditing unit-run canteens.

Earlier, in the second week of January, Joshi had summoned heads of the three forces on the same issue.

According to sources, the Vice Chiefs, who were representing the heads of the three Services, vehemently objected to the auditing of CAG in the Unit Run Canteens and claimed that each canteen is audited by chartered accountants. At this point Joshi told them that this argument was not tenable and questioned the reasons for preferring Chartered accountants over the Government Auditor.

While Vice Chiefs contended in the meeting that it was not possible for CAG to audit all 4,500 canteens, the CAG officials countered that they would audit on random basis and if they found irregularities, would consider further auditing.

Joshi directed the three forces to submit a detailed report on how to make way for audit of unit run canteens within a week and suggested for a high level committee of auditors and forces to resolve the issue.

For the past two years CAG and forces are locking horns over the auditing of Unit Run Canteens. In India, the forces supply system is managed by 34 depots of Canteen Stores Department (CSD), which is distributed through the 160 lakh end users through more than 4500 canteens, controlled by each unit. The Unit Run Canteens would take a margin at an average of four percent on the supply and the profit is expected to be around Rs.500 crore in the annual turn over of more than Rs.10000. Though CAG got access to audit the 34 CSDs, forces object the auditors when they demanded to check the accounts of Unit Run Canteens, where the actual sale takes place.

The forces get the money from the Consolidated Fund of India and enjoy Quantitative Discounts approved by the government, apart from the avoidance of taxes on most of the supplied items.

The CAG has argued out that as the fund is made available from the Consolidated Funds, they have the right to audit where as the forces claim that the affairs of the Unit Run Canteens are “purely private ventures of each units” and hence no need of auditing.
Forces, CAG lock horns over audit

Col KN Nair (Retd) comments
The CAG should have audited these URCs long back. Misuse of tax payer's money is in any case not in the interest of Nation. In this transperancy era, the Services cannot say no to the Govt Auditor. It is certain that the huge profits earned out of URC venture were/are being used by the Service Officers left and right. If the URC records are audited, this will come out as another major scandal. The CAG should act now.

Sunday, May 22, 2011

Army College of Medical Sciences: Admission Procedure Violates Equality

“Private non-minority colleges can't have 100% reservation” The Hindu New Delhi, May 15, 2011
Private non-minority unaided veteran educational institutions can't have 100 per cent share or a right to acknowledge students of their choice from usually a sold amicable group, incompatible all other students from being deliberate for admission, a Supreme Court has held.

A Bench of Justices B. Sudershan Reddy and S.S. Nijjar was environment aside a process of a Army College of Medical Sciences (ACMS), New Delhi, to distribute all seats to wards of stream and late Army crew and widows of Army personnel, supposing they compete in a Common Entrance Test controlled by suitable authorities for acknowledgment to medical colleges in a National Capital Territory of Delhi.
The Bench hold that a grant postulated by a Delhi supervision permitting a ACMS to fill 100 per cent seats with wards of Army crew “violates a simple beliefs of approved governance.”
Justice Reddy, essay a judgment, said: “It is now a well-settled component of a inherent jurisprudence that Article 14 does not merely aspires to yield for a adults small grave equality, though also equivalence of standing and of opportunity. The goals of a nation-state are a securing for all adults a companionship assuring a grace of a sold and a togetherness of a nation. If a publicly offering use follows a sold order that achieves a same or identical consequences as a restricted discrimination, and tends to continue a effects of such discrimination, afterwards it would violate a component of concrete equality.”

The Bench said:
“In a box of admissions to colleges, it is an concurred fact that a basement of supposed comprehensive abilities, we would finish adult selecting some-more students from improved amicable and educational backgrounds, thereby foreclosing or almost truncating a probability of people in such disadvantaged groups from being means to benefit entrance to a critical component of complicated life that grants grace to a individuals, and thereby to a organisation as a whole, both in this generation, and in destiny generations.
“If a immeasurable infancy of a youngsters, generally those belonging to disadvantaged groups, is denied entrance in a aloft educational institutions in a private sector, it would meant that a immeasurable infancy of youngsters, notwithstanding a naturally equal placement of talent and ability, belonging to disadvantaged groups, would be left but entrance to aloft preparation during all. That would consecrate a state of amicable puncture with a intensity for flame that would be on an unthinkable scale. The fact that non-minority unaided educational institutions insist on ‘social disadvantages blind’ acknowledgment policies is explanation that they are not recognising a loyal purpose of preparation as an occupation.”

‘Illegal, ultra vires’
The Supreme Court said: “The acknowledgment procedures devised by a Army College of Medical Sciences, Delhi Cantonment, for revelation students to a initial year MBBS march from a pre-defined source, forged out by itself and a primogenitor society, are bootleg and ultra vires a Delhi Act 80 of 2007.”
It destined a authorities to acknowledge a command petitioners to a initial year of MBBS march in ACMS “if a command petitioners still so desire, for they have been deprived of their legitimate right of acknowledgment to a march for no error of theirs, notwithstanding a arrange cumulative by them in a CET by formulating supernumerary seats. However, we make it transparent that a admissions already done by a Army College of Medical Sciences are saved and shall not be influenced in any demeanour whatsoever.”
The Indian Medical Association and some students challenged a acknowledgment process of a ACMS. After a Delhi High Court inspected a policy, appeals and command petitions were filed in a Supreme Court doubt a policy.
“Private non-minority colleges cannot have 100% reservation”
Read comments by Navdeep / Maj Navdeep Singh

Saturday, January 8, 2011

Consequences of Corruption in the Armed Forces

Building integrity and reducing corruption risk are important parts of building strong, capable, and affordable defence and security structures and forces.
Corruption undermines the defence and security capabilities of every country. Corruption causes waste of money, bad allocation of resources, and the purchasing of inadequate or low-quality equipment. This may endanger the life of personnel and decrease operational effectiveness. Corrupted personnel cannot be trusted. They can be paid the next time by vendors, organised criminals, terrorist organisations, or by potential enemies.
Corruption in the defence sector reduces public trust and acceptance of the military in general and may erode public support for peace-keeping missions. It also reduces resources for civilian sectors of the economy, and can infect other parts of government. Corruption slows down the development and growth of a nation.
Integrity
Integrity has both a technical and a moral meaning.
  • In a technical sense, we say that ‘the hull of this ship has integrity’. This means that the whole system works properly – the outer skin of the ship does not leak, and that all the various systems that make up and support the hull are sound and function correctly.
  • In a personal and moral sense, it means that the work has been done honestly and sincerely, and is uncorrupted.
    Here, when we say “integrity”, we mean the following:
  • An individual has integrity if he/she is doing their work competently and honestly, and completely.
  • A process has integrity if it works as it is intended to, and fits seamlessly into the larger system of which it is a part.
  • An organisation has integrity if its work is done within proper accountability, competently, to completion, and without diversion of output or resources to corrupt or dishonest ends.
    Corruption
    Corruption is “the abuse of entrusted office for private gain”.
    Countries themselves will often have formal definitions written into their laws. For example, the definition may read like: “The illegal action or inaction by an individual (either human or legal body) authorized to perform State functions directed at illegally obtaining any advantages, benefits, influences, privileges of material or non-material for themselves, or for third parties or groups”.
    Whilst there are many definitions, general experience is that most people know what it is, even if there is no formal description. For example in the United Nations Convention Against Corruption, which is the principal international convention on the subject, there is no formal definition of corruption; instead they give full definitions of what constitutes a public official.
    What is more important is to be clear that there are different types of corruption in defence. Measures to address the risks will be effective only where there is an understanding of which particular aspect of the problem is being addressed. The following questions assists that understanding.
    Anti-corruption policy in defence and security
    1. What are the areas of greatest risk in bribery and corruption for Ministry of Defence and armed forces personnel? (for example, small bribes, expenses, travel, postings, commission on local purchases, ACRs, Issue of NOC, misuse of canteen facilities)? List the top 6 areas.
    Areas to explore:
  • How do you determine the areas of greatest risk?
  • How are these areas of potential bribery and corruption risk mitigated? Describe the measures currently in place.
  • What are the sanctions which can be applied to personnel if they are found to have taken part in these top 6 areas of bribery and corruption?
    2. Describe the level of commitment to anti-corruption and integrity measures within MoD, Commands, Area HQ as declared by the Defence Minister and the COAS. How do they publish their policy and guidance internally?
    Areas to explore:
  • Do the RM and COAS talk publicly on integrity issues? If so, describe.
  • What is the level of awareness within the Defence Ministry and across the armed forces of integrity and corruption risk matters?
  • Give examples of steps taken to address integrity and corruption risk within the Defence Ministry and in the armed forces.
    3. Describe the measures in place within the Defence Ministry and armed forces to address integrity and corruption issues, and any major reforms underway to ensure that these issues are tackled. Please list all measures being taken.
    4. If there is an anti-corruption policy, describe who is responsible for its enforcement.
    Areas to explore:
  • Is a specific department or individual is responsible for ensuring that this occurs?
  • What is the effectiveness of this?
    5. What institutions exist with the aim of building integrity, and combating and preventing corruption in defence? Describe recent successes.
    Areas to explore:
  • What are the roles of anti-corruption and ethics advisers, external and internal auditors, inspections, prosecutors, etc?
  • Thursday, December 23, 2010

    Do Military Welfare Organisations come under the ambit of Consumer Protection Act?

    Impact of Consumer Protection Act becoming Perceptible: Prof. Thomas
    Thursday, December 23, 2010 17:33 IST
    The impact of Consumer Protection Act is now perceptible in the operations of providers of goods and services. This was stated by Prof. K.V. Thomas, Minister of State for Agriculture, Consumer Affairs, Food and Public Distribution while inaugurating the National Consumer Day function here today.

    The Minister said “In the Government and Public Sector we now see several Regulators, Ombudsman and grievance redressal mechanism in place, we can also discern the operation of consumer grievance redressal system in the private sector. This, to my view, is due to the proactive approach adopted in the Consumer Protection Act, by bringing the consumer rights in the forefront.”

    Prof. Thomas said, “In India it is not the legislative measures that are lacking in providing the consumer with the mechanism or the enabling environment for protecting their rights. The challenge is in the strengthening of the administrative mechanism in implementing such measures. This can be achieved by striking a balance between the health of the economy and that of the consumers.” He said, the responsibility lies on the stakeholders, in particular the government and VCOs to crate awareness about the existence of the redressal mechanism and laws protecting consumer interests. This will not only empower the consumers, but also smoothen the process of policy implementation, the Minister stressed.

    On the consumer responsibility which is this year’s theme of National Consumer Day, The Minister said that introduction of consumer responsibility should have a salutary impact on the growing market economy in India as well as on its environment. Prof. Thomas asked the higher income groups to work towards environment protection as they are in a good position to influence the other sections of the population.

    Secretary, Department of Consumer Affairs, Shri Rajiv Agarwal in his address stressed on the need for concerted efforts by all the stakeholders for educating the consumers. He said, Government has taken up a number of activities and schemes for creating consumer awareness in the country. The ‘Jago Grahak Jago’ slogan is now well known for informing the common man of his rights as consumer.

    President, National Consumer Disputes Redressal Commission, Mr. Justice Ashok Bhan, in his key note address, said that it is possible to bring down the pendency of consumer dispute cases to zero level if proper infrastructure and logistical support is provided to dispute redressal machinery. MP:SB:CP: consumer day (23.12.2010)
    Impact of Consumer Protection Act becoming Perceptible: Prof. Thomas
    Question: Do Military Welfare Organisations (like AWHO, AWES, CSD, AWWA etc) come under the purview of Consumer Protection Act?

    Thursday, December 16, 2010

    Two defence welfare societies under cloud

    Sandeep Ashar, TNN, Dec 8, 2010, 05.12am IST
    MUMBAI: Even as the CBI probes the role of retired generals and politicians in the Adarsh housing society scam, two more complexes set up originally for the welfare of defence personnel and war widows in Navi Mumbai have now courted controversy.

    The two societies- Raghunath Vihar Army Welfare Society (RVAWS), which has 534 flats in 13 multi-storey buildings in Kharghar's Sector 14; and the Army Welfare Society (AWS) Dara Enclave, which has 518 flats in 11 buildings and 38 row houses in Nerul's Sector 9—are housed on Cidco plots allotted at concessional rates. Their occupation certificates were granted in 2002 and 1995, respectively.

    The Army Welfare Housing Organisation (AWHO) —a Delhi-based welfare society formed by serving defence personnel which constructed the complexes to provide low-cost housing to servicemen and war widows— has served legal notices on the managing committees of the two societies, asking them to refrain from violating regulations laid down by AWHO at the time of allotment.

    The bone of contention is the transfer of land and ownership of the plots. The AWHO has opposed steps taken by the societies to register themselves under the Maharashtra Cooperative Housing Society Act, 1960 (MCHSA, 1960). The move is being seen as an attempt to acquire conveyance of the plots. While AWS has already processed an application to be registered as a cooperative housing society (CHS) with the registrar of societies after getting a go-ahead from Cidco, the general body of RVAWS has also approved a proposal along similar lines.

    AWHO advocate A K Tewari has threatened legal action against the societies.
    In a legal notice, Tewari has said these were already registered as welfare societies under the Society Registration Act XXI, 1860, and therefore could not be re-registered under the MCHSA, 1960. The notice was sent to RVAWS on November 22, 2010; it was issued to AWS on September 30. Colonel P R Sirohi, secretary for managing director of the AWHO, has also written to the registrar of societies, asking it to refuse any registration request from the societies. The societies, though, insist the CHS formation was vital to overcome "practical difficulties in the day-to-day maintenance of the complexes". Both have decided to oppose the notice.

    Umesh Sharma, chairman, AWS, said their current registration— that of a welfare society under the Bombay Public Trusts Act— did not permit maintenance of housing societies.

    Even colonel (retd) Shashidharan, secretary, RVAWS, said no specific rules were laid out for housing maintenance in the case of a welfare society. Refuting this, a senior AWHO official said, "Tasks pertaining to maintenance of a society and its development could easily be performed using provisions of the 1860 Act." A few members of both the societies hold this opinion too. Col (retd) T S Tanwar, a resident of AWS, said the original transfer deed stated that the society was completely owned by AWHO and that society members could only maintain it. "No transfer of interest can take place."

    A RVAWS member alleged the re-registration was aimed at acquiring rights to sell additional FSI and TDR rights to private developers, a charge refuted by office bearers of both societies.

    It is AWHO's decision to allow civilians to purchase flats in the societies which is being blamed for the mess. As AWHO has collected charges for the flat transfers, its claim of being a "welfare organization functioning on no profit basis" is being questioned.
    Read more: Two defence welfare societies under cloud - The Times of India
    AWHO Demystified

    Tuesday, September 7, 2010

    Canteen Stores Department (India) Demystified

    There are over 3600 CSD unit run canteens with almost 6300 crores of turnover per annum, thereby, generating over 300 (assumed profits at 5%) crores profit. However, this is not revealed to Govt of India. These canteens are run as Private Venture of Army as of date. When a query through RTI was asked, it was clearly stated that these 3600 CSD canteens are 'Private Ventures of Army' and it has nothing to do with Govt at all. This declaration is very alarming. Had this CSD canteen (Retail) operations been controlled by the Govt and Audited by the CAG, the profit amounting to Rs 300 Cr would have been made accountable to Jawans and Veterans of the Indian Armed Forces. Presently, this profit of 300 Cr is being used as per the discretion of Local Commanders. This system needs to be cleaned up at the earliest lest leading to more scams. The CAG, CVC, MOD and Government of India should take notice to ensure profits are utilised for the welfare of serving soldiers, defence employees and the Ex servicemen and their families.

    Canteen Facilities to Defence Personnel
    Introduction: Providing canteen facilities to the Defence Personnel and their families is obligatory on the part of Govt of India. This facility is created as a welfare measure. The entitlement for canteen facility is included in the pay & perks offered to the defence personnel. This could be verified from the career sites of Army, Navy & Air Force.

    Canteen Stores Department (Wholesale Outlet)
    There are two types of Canteen Services. One is wholesale and the other one is Retail. The wholesale is called 'Canteen Stores Department'. Its headquarters is based at Adelphi, Mumbai. There are total 34 CSD Wholesale Depots in India. CSD procure the items directly from the manufacturers and stock it in these Depots. The CSD by itself does not come in direct or daily contact with its end customers. CSD deals only with the Retail Outlets (i.e Unit Run Canteens, in short - URCs).

    Profits
    The turnover of CSD is based on the purchases made by the Retail Outlets. As on 31 Mar 2008, the turnover of CSD was Rs. 5600 Crores as per the official records. Therefore, the net profit of CSD was almost 300 crores during the Financial Year 2007-2008. The sales/turnover, profitability, its distribution etc of CSD are revealed to the Govt of India. Besides, CSD contributes to the Consolidated Fund of India as well ( 50% of the net profit). CSD is a Public Fund and therefore, the books of accounts are maintained as per the guidelines of Govt of India. CSD account falls within the purview of The Comptroller and Auditor General of India. CSD functions under the Ministry of Defence. It employs a few serving officers on deputation from the Armed Forces. Though the Department functions on commercial lines, it is also governed and bound by Government rules and financial regulations. There are nearly 3000 items in the CSD inventory.

    Organisation
    If we see the organizational structure of CSD, it is revealed that a Serving Defence Officer of the rank of Major General is the Chairman, Board of Administration CSD. Similarly, under Ministry of Defence a Board of Control, Canteen Services (BOCCS) is functioning. The Chairman of BOCCS is Raksha Mantri (RM). Vice Chairman is Rajya Raksha Mantri (RRM). The members are: Defence Secretary, Financial Advisor Ministry of Defence, Quartermaster General (QMG) Army Headquarters etc. Also, a Deputy Directorate General Canteen Services (DDGCS), QMG's Branch is functioning as the Secretariat of the Board of Control.
    From the above, it is very evident that the wholesale outlet i.e. CSD is controlled by the Govt of India through various agencies and the earnings out of CSD are fully revealed to the Govt of India. Also CSD claims that “From a humble beginning of Rs. 47 lakhs sales turnover in the year 1948, Canteen Stores Department has grown to be the largest retail network in India with a record sales of more than Rs. 5600 Cr as on 31 Mar 2008".

    Unit Run Canteens
    Whereas, in the case of Retail Outlets (i.e Unit Run Canteens (URCs)) the functioning is entirely different. It is revealed that total 3600 URCs are functioning in India. Total turnover of these URCs as on 31 Mar 2008 was almost 5300 crores. Therefore, the net profit emerged was appx Rs. 270 crores. These URCs are permitted to sell only those items which are procured from the CSD Depots (wholesale outlets). These URCs form an important part of CSD supply Chain Management system of indenting, procuring, placing and providing various items in the inventory to the customers. This very fact has been accepted by the CSD and records to that effect are available for reference. A departmental canteen which is run by the Units of Army/Air Force/Navy for the welfare of Service Personnel, their families, dependents, civilians paid out of Defence Budget etc is called as Unit Run Canteens (URCs). These canteens sell provisions and liquor items on discounted rates. These canteens can procure only those items which are supplied by its wholesale outlet, i.e CSD. Tax exemptions are applicable to this facility. As on date, these URCs cater to the requirements of 1.60 crore bona-fide customers in India. This facility is undoubtedly specified as an entitlement in the Pay and Perks of Service personnel.

    Stats: Year/ Turnover/ Profits
    2000-2001/ 3115.04/ 155.75
    2001-2002/ 3452.47/ 172.62
    2002-2003/ 3913.91/ 195.70
    2003-2004/ 4167.32/ 208.37
    2004-2005/ 4416.96/ 220.85
    2005-2006/ 3872.27/ 193.61
    2006-2007/ 4456.31/ 222.82
    2007-2008/ 5221.66/ 261.08
    2008-2009/ unknown
    Presently these profits are being utilized by the Defence Officers and Local Commanders as per their discretion in the name of 'Welfare' activities. Literally, till date, the Govt of India could not get the correct picture of the functioning and output of these canteens.

    Extract of Commission Report
    The excerpts from the 87th Report of Committee on Subordinate Legislation, Parliament of India (Rajya Sabha), presented on 13th September 1991, regarding utilization of canteen profits as per the discretion of local commanders are reproduced herewith for perusal. “Para No. 2.28 : The Committee is of the view that the present arrangement has been worked out only to SIPHON OFF the major chunk of the profits of the Canteens to be placed at the discretion of local commanders. Obviously, such arrangement can hardly be described as satisfactory. It will not be out of place to mention that during the Committee’s visit to Calcutta, the Air Officer Commanding, Eastern Air Command, Calcutta curtly declined to reply the query of the Committee as to for what specific purposes the profits of the Canteen placed at his discretion were being utilized”.

    Welfare of Troops
    The net profits must be utilised for genuine welfare of Troops, Serving Soldiers and Veterans. This National resource and asset must not be wasted away on frivolous expenses which only breeds sycophancy and doctoring of accounts to please senior officers in the chain of command. These profits must be utilised for creating National Assets which will really address welfare and benefit our deserving troops, defence civilians and veterans including their dependants.
    Inputs extracted from Guardian foundation (NGO)
    Military Canteen Operations
    Related Posts
    CSD India: The travails and torment of ESM
    Corruption in Armed Forces can be reduced by outsourcing its Welfare activities to the ESM Organisations
    CSD restricts mobility of Officers and PBORs- More bureaucratic controls more corruption

    Thursday, June 17, 2010

    Welfare ESM: AWWA in the counselling mode

    ASTHA
    In the changing socio- economic environment wherein education and affluence have become the hallmark of status in society, women too desire to step forward and work. This desire is pursuer a career and to assert themselves, sometime leads to understandable differences in husband-wife relationship. These differences may even lead to disharmony at home. While a man may have his point of view, invariably the main sufferer is the woman. Moreover woman today no longer want to suffer silently. They know their rights and demand justice. Yet many cases go unnoticed and only a minuscule number may be coming forward to seek justice/ redress. Realising this, AWWA seeks to bridge and bring the gap and about greater understanding and harmony amongst the Army personnel and their families.

    MAJOR CAUSES
  • Dowry. Dowry is still considered a basic right by many communities. Most educated men still demand dowry, buckling under the pressure from their family member. For women, the inability to live up the incessant demands of in-laws is major cause of marital discord.
  • Torture/ Harassment The unnecessary Saas-Bahu debacle still continues despite increased level of education and awareness. Psychological awakening adjustment is missing and needs to be addressed.
  • Plural Marriage. Since the soldier has a migratory job, most of the time he is compelled to stay away from his family. This can lead to a feeling of insecurity, paranoia and frustration. Stray cases of plural marriage also occur. In most cases the sufferer is the woman. Slow judicial process adds to their woes.

    Economic Factors. Often a husband may not send any money to his wife or in good faith may send all the money to his parents. In either case the woman suffers the tribulations. Other Causes.
  • Alcoholism.
  • Depression.
  • Incompatibility.
  • Disparity in upbringing and education.
  • Environmental effects

    CONTACT
    ASTHA is functioning since 26 Jun 03 at the MI Room Complex, Arjun Vihar, Delhi Cntt. It has a professional Counsellor, is available from 11 AM till 4 PM on all working days for counselling.
    For more details click link: AWWA: Astha
    Comments: The webpage has not been updated. The counselling will prove very useful for Ex Servicemen too.

    The myths created by the Sixth Central Pay Commission busted
  • Sunday, February 7, 2010

    Corruption in Armed Forces can be reduced by outsourcing its Welfare activities to the ESM Organisations

    Indian Armed Forces commercial empire is generally termed as "welfare" activities and the main beneficiaries are the officer cadre as it it is solely controlled by them. Moreover, these types of welfare activities fall under the Indian Society Act enacted in 1860 which is itself an obsolete ACT but still in vogue. What are then the activities?

    1. Canteen Stores Department
    2. Army Welfare Housing Organisation
    3. Army Wives welfare Association
    4, Army Welfare Education Society

    The other commercial activities include agriculture, farming, dairy, manufacturing, land/ building leasing/ rentals, wet canteens, military contracts/ builders, investment of Regimental Funds in Banks and other services/ activities. These activities has growth structure from unit/ sub unit level up to the Army Headquarters.

    The Capital accrued from profits is used for the personal benefit of the military fraternity. It refers to all activities that transfer resources from the state to an individual or a group within the military. These activities do not figure in the defence budget nor are they subject to the normal accountability procedures of the state. They are either directly controlled by the AHQ or enjoy its implicit or explicit patronage. It is here that there is scope for misuse of funds, sycophancy and corruption at all levels.

    CSD Canteens
    Need to check default in services
    CSD sans consumer protection
    CSD restricts mobility of ESM
    Travails and torment of ESM on procuring CSD consumer goods

    AWWA
    Army deserts AWWA
    Welfare of troops: AWWA and AWHO?

    AWHO
    AWHO Demystified

    AWES
    Quality Education at Affordable Cost

    Ex-Servicemen Population
    A total of 13,95,819 ex-Servicemen and 2,56,382 widows of the Service personnel were registered with various Zila Sainik Boards in the country in June, 1997. The ex-Servicemen population is mainly concentrated in the States of Uttar Pradesh (2,45,195), Punjab (1,78,932), Haryana (1,38,898), Maharashtra (1,20,614), Kerala (1,18,967), Tamil Nadu (96,870), Rajasthan (89,666) and Himachal Pradesh (73,163).

    Ex-Servicemen need to be rehabilitated in civil life after their release from the Services on account of their truncated career in the Armed Forces. About 55,000 service personnel are retired/released each year. (Sadly Armed Forces seldom employ Ex Servicemen in its own Welfare Organistions.)
    Resettlement and Welfare of Ex Servicemen

    Outsourcing
    Outsourcing these welfare activities to Ex- Servicemen Organisations will greatly enhance and improve the Combat Effectiveness of the Armed Forces as combat personnel are relieved from welfare related activities. ESM are well trained in welfare activities and hence are capable of providing efficient services. Employing ESM is itself the greatest welfare oriented service which the Armed Forces should implement before approaching the Government for Second Career for our Sepoys, NCOs and JCOs.

    Saturday, March 7, 2009

    Mumbai Mayhem: How concerned are we about our Jawans?

    Major Sandeep Unnikrishnan, Ashok Chakra

    All Mumbai warriors, who fought the terrorists on 26 Nov 2008 have been allotted a CNG (Compressed Natural Gas) station each by the Petroleum Ministry. Maj Unni's father has donated the allotted CNG station to AWWA (Army Wives Welfare Association) for running and spending the profit on the welfare of Jawans..
    Hats off to the great father- son duo for their sacrifice.
    Brigadier PT Gangadharan, Guards (veteran)

    Comment: AWWA will be doing a yeoman welfare service if more and more ESM are given employment in lieu of active serving personnel as Army has deserted AWWA click here. The aims and goals are:
    AWWA is a cohesive, well-knit organisation moving steadily towards identified goals. It is a means and platform where collective energy of all members is channelised into achieving its set goals. AWWA reaches out to army personnel, their wives, widows and children in solving their problems in daily lives.
    AWWA- a truly vibrant & active organisation, continuously involved in welfare activities, whether in time of war or peace.
    Asha, Wishwas, Astha with the two doves is a significant symbol of AWWA. A ray of " Hope"- Asha" with unbound " Trust-Wishwas" together with a new "Confidence-Astha" for every member of this large Army Family.
    AWWA Stands for Sharing and Caring with abundant " hope, trust and confidence". The logo - Two doves flying to meet the challenges was designed in 1998.
    AWWA
    Army deserts AWWA

    Monday, January 12, 2009

    Soft power that Indian armed forces lack

    Photo credit Samachar
    Samaritans in Assam

    Failure can be simply attributed to the obsolescent organisational culture and misplaced value system of the Indian armed forces. The defence services in India are in a time warp — colonial, feudal and fit for the society of an industrial era. The civil society has changed dramatically in last two decades towards an information age but the services have done nothing to change with the society. The disconnect between the services and the society grows wider with each passing day. In an era of transparency, the opacity of the organisational policies of the services creates embarrassing situations like the one recently created with the RTI on AWWA. The lack of an electronic copy of numerous journals produced the institutions of the three services on the world wide web is reflective of the outdated policies that the services and its top brass espouse.
    Read Full Article: Soft power that Indian armed forces lack

    Comment: The Armed forces need to be harbingers of change. It needs to sieze and overpower the Red Tape Bureaucracy, combat corruption and be in the forefront of Nation Building; other than its Primary Goal "Security of Nation". Each and every Armed Forces personal from a foot soldier to the chief need to be a proactive citizen while going about their daily routine.

    Friday, November 21, 2008

    Army deserts Army Wives' Welfare Association


    CHANDIGARH: Caught in an RTI poser that sought information on the funding of Army Wives' Welfare Association (AWWA), the Army in a shocking reply to the Central Information Commission (CIC) has instead disowned it.

    Offices of AWWA are scattered across Army cantonments in India and its headquarters is in South Block, Delhi like the Army headquarters. It is, on the face of it, a registered society under the Societies Registration Act, 1860.

    Giving a new twist to the ongoing debate over functioning and funding of AWWA, the Army has in a five- page reply, filed on behalf of the chief of staff, Western Command, said it has nothing to do with funds for the association either.

    The reply, a copy of which is with TOI, is to be submitted before the CIC next Monday (November 24). It comes over a year after the Army declined to provide information on where money for AWWA came from, taking recourse in the plea that as the body was not funded by the government it did not fall under the RTI purview.

    In fact, the Army has gone on to plead with Major (Retd) Guneet Chaudhary to withdraw the petition since "he too has donned the Olive Green and he is well aware of the yeoman's service done by AWWA for jawans. We leave it to his wisdom and discretion whether he should continue to insist on or persist with the issue which was closer to his heart at one point of time and in any case is a non-issue when it comes to questioning it. He may seek to withdraw his appeal and put a full stop on the issue".

    In the RTI application, Chaudhary had sought information from Western Command about the legal status of AWWA, source of funding, organizational structure, number of officers and other ranks attached with it, reason for giving office space in the high security zones of western command headquarters, grants given to widows and orphaned children of Army in the last five years and the AWWA president using Army aircraft and Army vehicles.

    "As regards funding, we reiterate with all emphasis that Western Command (or Army) does not fund AWWA in any manner," states the reply even as documents procured by TOI on Wednesday revealed that AWWA was funded by a total of 18 HQ brigades in 2004 and by 16 HQ brigades and divisions in 2007.

    Record reveals that all AWWA offices are run with the financial assistance from various units. Even the officer-in-charge of the schools run by AWWA are serving Army officers of the rank of Lt Col. An interestingly point: If the Army doesn't pump in money for AWWA, it's a miracle who runs the sprawling network as there is no subscription fee for membership.

    Moreover, all vehicles used by AWWA in their day-to-day functioning belong to the Army and the wives' association even finds a mention in the Army's official website. The matter will be finally heard by the commission on November 24.
    Army deserts its wives' welfare club
    Official AWWA website
    AWWA Awards Presented
    Welfare in AWWA & AWHO

    Comment: The Army should come clean and if AWWA is an illegal association then it should be prudently closed down. Similarly all illegal welfare organisations need to be vetted and made legal as per society act of 1860. One cannot steal and use resources for a noble welfare cause. All welfare association's accounts must be able to stand public scrutiny in the public domain. Armed Forces need to be scrupulously honest befitting of a soldier. Prudent action alone can regain our lost honour and dignity.

    Sunday, November 16, 2008

    May the Forces be with us

    One India One People

    Cover by H V Shiv Shankar

    V Gangadhar eavesdrops at a conversation where three defence personnel are celebrating their ultimate victory where they defeated their own government over the sixth pay commission.
    {Great satire: Question is have we really won?}
    A long deserved celebration

    Today, there is no clear separation of peace and war, as both seem to have merged and warfare is also changing. In this scenario, the need is for reconfigured military forces, with a broad range of skills for employment across the entire spectrum of conflict, says Lt Gen Vijay Oberoi, PVSM, AVSM, VSM.
    Changing role of armed forces Rising to new challenges; The power of the people

    The job and the working conditions in the armed forces may be tough, but women officers have proved that they are in no way inferior to men when it comes to hard work and efficiency. Major General (Retd.) E D’Souza, PVSM, welcomes the decision to open up regular commissions to women in the army.
    Women Officers In Armed Forces A major step forward

    Paramilitary forces have proved their mettle in tackling internal security. Prakash Singh highlights some of the constraints facing the forces and suggests measures which can boost their efficiency.
    The sentinels within

    Major General (Retd) Surjit Singh, AVSM, VSM, analyses the issue of One Rank One Pension in the armed forces and highlights the futility of relating the issue of civilian pensioners to that of the soldiers.
    One-Rank-One-Pension

    Life in the armed forces is not simple but then it was never meant to be. The perseverance and enthusiasm of the soldiers spill on to their families as well. Nithya Subramanian gives a first hand account of life in the army.
    A life less ordinary

    While the men are away guarding the country, the gritty wives of our military personnel are engaged in many welfare work for the families of the forces, war widows and retired warriors. An insight into the activities of the three welfare associations.
    {Very laudable objectives. Can the welfare organisations come clean on who the beneficiaries are with full accounts of income and expenses posted on web portal?}
    Women of substance

    For those seeking challenges in life, a privileged lifestyle and pride in work with a training that would inculcate virtues and values for a life time, a career in the army is the best, says Brigadier Suresh Chandra Sharma (Retd.).
    From a man to a gentleman

    Wednesday, August 13, 2008

    SCPC: Lament of a Soldier's Wife

    Dear Madame President,

    Should I severe the ties that are almost a decade strong?
    Should I chew my words and call my decision wrong?
    Should I return the trousseau that my mother chose?
    Should I turn all the festivities into an affair morose?
    Should I go and tell him that I love him no more,
    Shattering him again and making his heart sore?

    Whose fault is it, dear madame, that I decide thus?
    Would you say that it's personal and I should not fuss?
    Nothing, my dear lady, is personal about a soldier's life.
    For when has he thought of his mom, dad, kid and wife?
    He, whose only call is the call of honour, forgets what he was
    And becomes what he's forced to be- a number among the Olive Green mass.

    He demands nothing and goes about in silence.
    Drinking and smoking, when clouds of desolation grow dense.
    His mother awaits him and calls up time and again,
    He switches off the phone to avoid that voiced pain.
    His friends ask him to come (along with two Black Labels)
    And see their plush houses and read therein their success' tales.

    His wife will wait for months to get some surgery done
    As, in that dilapidated SF, caring enough she finds none.
    She would remember sadly her starry-eyed days
    When what attracted her was his gallant ways.
    Never did she realize, that foregoing her Doctorate in the UK
    All she would get is this battered house, stale ration and his meager pay.

    He was no less- in fact, better than some now white-collared ones.
    Only, he thought romantically as one of Mother India's sons,
    And chose the call letter from IMA, among several others,
    And avowed his commitment to his land and his brothers.
    He did push ups, while his colleagues abroad partied
    His cousins wore designer labels, while he a 'combat' dirtied.

    He is unlikely to accompany his wife to that family function
    Where she goes alone and starts crying from the junction.
    'Coz how would she face her friends and cousins and siblings,
    Who would judge her attire, and other material things?
    She never was a hedonist, but now she feels the pain
    And curses the day when he ceased to remain 'sane'.

    For what else is this, if not utter insanity?
    That he sacrifices his dreams at the altar of others' vanity.
    He sleeps in trenches along with his boys,
    And yet unable to buy his kids' favourite toys.
    His kids are born and brought up in his absence
    And he kisses their wallet-ed photos in silence.

    For the first time, he demanded a share of what he deserves:
    An agonized plea to the heads of the land he serves.
    The petition goes from table to table, round and round
    And he stands still, awaiting good, as if spellbound.
    Someone, then, accuses him of hedonism and greed
    And lists what he gets, and how it surpasses his need.

    He feels cheated and in humiliation decides to take the call
    To hang his starred uniform, once and for all.
    But will he be able to carry through this decision?
    After all, it was he who chose a Permanent commission!
    When he decided to join, he overcome all resistance,
    But when he decides to quit, he stands a bleak chance.

    Why should I, then, be a fool and marry another?
    Who, like his band of brothers, will find me a bother!
    Why should I let go of my dreams to fuel his self-destructive fire,
    When the nation that he serves will find no time to light his pyre?
    Why should I, along with him, bear the burden that others discard,
    And sacrifice all I have to be called an 'emotional retard'?

    Why should I not confront him and say-
    'I don't want to marry you because you cant nay
    What your seniors orders, even if lay here dying.
    I don't want to spend my life waiting for you crying.
    I get hurt to see the attitude of the unsympathetic crowd
    To ensure whose sleep, your commitment is clear and loud.
    They begrudge you, your little pay hike,
    This would enable you to buy your coveted bike.
    Who weigh your life in an imbalanced scale,
    And choose to ignore the path of hardships you trail.'

    This is how every young lady, who is in love with or betrothed to an Army officer, is bound to feel in the wake of the uncertainties surrounding the sixth pay commission. The ladies serve the organization in their own way WITHOUT being on the payrolls. They leave their careers and individuality behind to become a pillar to their men folk. With transfers every three years, forced separations and agonizing civilian apathy, the ladies are forced to limit their horizons. Does it not make sense, then, to shun the Army personnel altogether in the marriage market?

    Pardon me for my sarcasm.
    My dear madame, I entreat you on the behalf of thousand others to look into the welfare of our men in uniform. They demand nothing but a share of what they truly deserve. The delay in declaring and implementing the revised pay recommendations for the forces is taking its toll. Being the Supreme Commander of our forces, it is in your purview to safeguard the interests of those who serve this nation unconditionally. Above all, being a woman you are likely to understand the sufferings of the families. I would refrain from using jargon and end my plea with folded hands.
    Thanking You.
    A soldier's betrothed

    Sunday, April 6, 2008

    2008 The Year of Ex- Servicemen

    Allahabad, Mar 28 (ANI): Defence Minister A K Antony today said that the Government has asked the Armed Forces to send a report to the Government of shortages of personnel in the Services.
    He said that he had asked the Armed Forces to “carefully study the scenario and come out with a report on the possible ways to make a career in the armed forces more attractive for the younger generation.”
    Antony was inaugurating the Defence Pension Training Institute here. Minister of State for Defence M M Pallam Raju accompanied him.
    In his inaugural address at the ceremony, he asserted that the Government is committed to ensure “a life of dignity for people who have retired from the armed forces”.
    “An important step in this direction would be to develop a grievance- free pension sanction and disbursal system, and the new institute has been set up to overcome the skill deficit that has been coming in the way of achieving the end,” Antony said.
    He also said the Government has declared 2008 as “the year of ex- servicemen”, to ensures that all possible measures would be adopted “to make things easier for the nearly 22 lakh defence pensioners in the country”. (ANI)

    2008 Year of ESM

    I have reproduced the above article as two important measures for ESM has been announced by the Defence Minister AK Anthony.

  • Government has declared 2008 as “the year of ex- servicemen"
  • Grievience Free Pension Sanction and Disbursal System

    What ESM expects from the Ministry of Defence?
  • Modernisation, automation and net linking of all Zilla Sainik Boards.
  • All grievance applications of ESM pending in Zilla Sainik Boards be processed within 30 days.
  • All welfare measures and list of ESM beneficiaries displayed prominently in Zilla Sainik Board Offices.
  • Home delivery of services to ESM especially the disabled, aged, sick and widows.
  • User friendly ECHS and CSD facilities.(Judicial use of about Rs 400 crores profits from CSD for troops welfare)
  • AWHO services and housing to be extended to PBOR living in rural India, as it is presently biased towards Officer Cadre and pro-metro-centric.

    Work ethos
    Soldiers serene silence is broken solely with the loud thunder of battle cries in defence of the nation. They are subjected to the Army Act and remain disciplined and loyal at all times. In contrast the Civilian Defence Employees enviably enjoy the freedom to mobilise and strike at will and take the organisation to ransom at their own time of choosing, as it is within their democratic rights. The Civilian Defence Employees are tasked to serve the Soldiers interests and to provide the Military wherewithal for combat in Peace and War. The mute question is whether they can deliver what they are tasked for?

    See the slide show India Gate Protest. These vivid photographs are a telling proof of the quality and services the Armed Forces can expect. Can trade union system with its scant respect for "work ethos" improve our military capability or morale of the troops?

    Links
    Myths Busted
    Dreamers Club
  • Sunday, February 3, 2008

    Are ESM Welfare Organisations under any Scanner

    All the non-profit and State welfare organisations must utilize 85% of its income in any financial year (1st April to 31st March) on the objects of the organisation. In case the organisation is unable to spend 85% of its income in the previous financial year due to late receipt of income or any other reason, the trustees/ governing body may exercise the option to spend the surplus immediately within subsequent 12 months. Surplus income can also be accumulated for a specific project, for a specific maxium number of years, as prescribed. The funds of the organisation are deposited according to the forms and modes specified u/s 11(5) of the Income Tax Act. Many organisations resort to spinning/ parking money in the Banks and circumvent the intended purpose.

    We see so many ESM Welfare Organisations in the Public domain, but sadly none of them spell out their welfare activities in monetary terms and indicate precisely who benefits from these organisations in real terms. The audited accounts are not displayed in the respective websites violating the basic principle of transparency.

    Moderator

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